Strategic Tips for Purchasing Your First Home

Buying your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it's a dream you can make come true, but there are some hurdles you'll need to overcome in today’s housing market, specifically the limited supply of homes for sale and ongoing affordability challenges.

So, if you are ready, willing, and able to purchase your first home, here are three tips to help you make your dream a reality.

Save Money with First-Time Homebuyer Programs                                       

Paying the initial costs of homeownership, such as a down payment and closing costs, can be daunting. However, there are numerous assistance programs for first-time homebuyers that can help you obtain a loan with little or no money down. According to Bankrate:

“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”

To find out more, talk to your state's housing authority or check out websites like Down Payment Resource.

Expand Your Options by Looking at Condos and Townhomes

There are currently not enough homes for sale to accommodate everyone who wants to buy one. This drives up home prices and makes it difficult for buyers to afford. Consider condos and townhomes as a solution to this problem and a place to live right now. Realtor.com explains:

“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”

One reason they may be less expensive is that they are often smaller. However, they still provide an opportunity to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your future move into a larger home if you decide you need more space. Hannah Jones, Senior Economic Analyst at Realtor.com, says:

“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”

Consider Pooling Your Resources To Buy a Multi-Generational Home

Another way to enter the market is to buy a home with friends or family. This allows you to split the cost of items such as the mortgage and bills, making it easier to afford a home. According to Money.com:

“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”

Bottom Line

By exploring first-time homebuyer assistance, condos, townhomes, and multi-generational living, it can be easier to find and buy your first home. When you’re ready, let’s connect.

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